Sabra Healthcare REIT (SBRA – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Juan C. Sanabria from BMO Capital maintained a Hold rating on the stock and has a $16.00 price target.
Juan C. Sanabria has given his Hold rating due to a combination of factors including Sabra Healthcare REIT’s first quarter earnings for 2024 surpassing expectations, though its same-store net operating income (SSNOI) growth in the Senior Housing Operating Portfolio (SHOP) segment showed a less impressive performance compared to its peers. Sanabria observed that the company’s management cited challenging comparisons as a reason for the softer SHOP SSNOI growth, which was at 9.5% compared to the anticipated low- to mid-teen growth. Moreover, the company’s guidance remained conservative, not reflecting new acquisitions, despite a noted increase in the acquisition pipeline.
Despite Sabra Healthcare REIT’s stock experiencing a recent price increase following strong results from its peers, Sanabria anticipates the stock may not see significant short-term gains. This cautious outlook is due to the maintained guidance for 2024’s normalized funds from operations (FFO) per share, which is slightly below the Street’s expectations, and although the normalized adjusted funds from operations (AFFO) guidance is above the Street’s prediction, it does not account for potential acquisitions or dispositions for the year. Sanabria’s analysis also points out that the company has not provided growth expectations for its SHOP segment, contrasting with the more robust growth projections disclosed by competitors.
C. Sanabria covers the Real Estate sector, focusing on stocks such as National Health Investors, Public Storage, and CareTrust REIT. According to TipRanks, C. Sanabria has an average return of -1.9% and a 42.72% success rate on recommended stocks.
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Sabra Healthcare REIT (SBRA) Company Description:
Sabra Health Care REIT, Inc. engages in managing and investing in healthcare-related real estate properties. It focuses on the acquisition, financing, and owning real estate property to be leased to third party tenants in the healthcare sector. The company was founded on May 10, 2010 and is headquartered in Irvine, CA.
